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news.GlaxoSmithKline's financial results for 2005 have exceeded stock market predictions with an increase in earnings per share of 18% and overall profits exceeding GBP6.8 billion. The impressive results for the company were primarily driven by strong sales of some of its key products.
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Revenues from the company’s asthma drug Advair rose 22% to exceed GBP3 billion in 2005, despite a proposal by US regulators in November 2005 that the drug should only only be given to asthma sufferers who had not been helped by prior treatments.
Other key growth drivers included an 18% rise in revenue to GBP1.3 billion from the company’s diabetes drug Avandamet.
GSK also highlighted its strong pipeline, which includes its eagerly awaited cervical cancer vaccine Cervarix, due for a regulatory filing in the EU in March, and in the US before the end of the year. However, Merck & Co may have already stolen a march on the UK-based drugmakers with its rival vaccine Gardasil having already been submitted to regulators in both territories.
The company further said that it expects growth to continue to the tune of 10% in 2006.
While overall company turnover for the year grew by 7% to over GBP21.6 billion, the company’s operating profit increased by 16% to more than GBP6.8 billion. The company suggests this faster growth of profit compared to turnover was due to factors such as lower legal costs and asset disposals.